Retail bosses urge Chancellor to reform business rates to boost growth
Over 70 retail bosses have urged the Chancellor to slash business rates for retailers in a move which they claim would boost growth and fuel investment.
In a letter to Rachel Reeves, 71 retail chief executives argued the government should “level the playing field” by introducing a ‘retail rates corrector’, which would see rates paid on retail properties fall by 20 per cent.
The letter, co-ordinated by the British Retail Consortium (BRC), argued the retail industry paid 7.4 per cent of all business taxes when it only made up five per cent of the overall economy.
Business rates made up a larger contribution of the total tax bill than for any other sector, the BRC said, adding: “What is clear is that our high streets and town centres are paying far more than their fair share of tax”.
Business rates are an annual tax on the value of business property. The tax is levied by local authorities and raises around £26bn per year.
Business groups have been calling for the levy to be reformed for years, arguing that it puts bricks-and-mortar stores at a disadvantage against online rivals.
The BRC noted that of the 6,000 stores which closed over the past five years, two-thirds said that the business rates bill had been a major factor in the decision. Research suggests a further 17,000 shops could close over the next decade.
Labour has committed to reform the business rates system, but has not given any more details on its plans since entering office.
“Rates are also holding back current investments we want to make in pay and upskilling our people, in new and improved stores and in the technology that will support productivity and economic growth,” the retail CEOs wrote.
Signatories included Giles Hurley, CEO of Aldi UK; Graham Bell, CEO of B&Q; Austin Cooke, CEO of Poundland; and Oliver Tress, founder and CEO of Oliver Bonas.